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China: While Finished Products Move Out, Raw Materials Remain

Volumes of finished products are moving from China to South East Asia, with Vietnam and Indonesia being the main destinations. This is mainly due to a combination of:

  • Higher wages
  • Higher land rates
  • Harsher environmental regulations
  • US-China trade war

However, China is still the main actor in terms of raw textile materials such as fabrics, trims and accessories... Indeed, these industries require larger investments and are not as easy to relocate as finished products.  

fabrics China 2019

 

Why are raw materials so important?

 

70% 50%
of the price of the product of the root cause of quality issues

*Average estimate based on SgT's internal and external data

 

The benefits of focusing on raw materials' quality are significant:

Benefits 1 RM

BETTER BUY

Understand suppliers' technical capabilities, massify on the most reliable mills with re-negotiated prices 

Improved ROI

Good fabric = fewer issues on making, less waste, more fluidity, faster to be worked 

Benefits 2 RM

On-Time Delivery

Early identification of issues allowing for changes before it is too late

Less Returns in Store

Reduced shrinkage, holes, color fastness = satisfied customers 

 

SgT's raw materials solutions

 

Mills Technical Audit
  • Fully verticals or non-verticals
  • From spinning to finished fabrics (natural/synthetics)
  • Wovens/non-wovens, knits (warp & weft) incl. high elastomeric (neoprene)
  • Support for corrective action plan implementation

Color Process Validation

  • Standalone dyeing units 
  • Vertical units including yarn dyeing 

Metallic Trims Audit

Ensures the origin & traceability of metal parts including belt buckles, metallic ornaments… 

Mills Lab Certification

Self-testing by a qualified mill representative for manufacturers with solid QMS and in-house lab

Testing & Wear Testing

  • Performance, durability
  • Chemical, toxicology 

Sustainability

  • Chemical management (incl. Higg Index)
  • Waste management & environment 

Final Inspection Before Export

Inspections of finished fabrics, leathers and yarns

 

Interested in assessing the quality of your raw textile materials produced in China?

Contact Us

Topics: Raw Material Inspectings, China

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